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Generating Funds Fast when Bad Credit is Holding You Back

How to Generate Funds Fast when Bad Credit is Holding You Back

 

Are you suffering from a bad credit problem?

Don’t know how to generate fast cash. If that’s what you are going through, then it’s time to know about all those options that you can avail even with your bad credit situation. You will waste your time when you apply for a loan in the bank because this institute always runs a credit check. No matter how amazing your income proof is, when your credit score is low, you can’t easily enjoy a loan approval from a credit union or bank. Here are three standard options that you can make the most of as other people are going for.

Best Title Loans 

When you have significant cash needs and are looking to get funds fast, then only title loans are something that you can capitalize on quickly. The primary reason for its name and fame among people is the speed with which one can have the fund. In most cases, you can get cash into your bank account within 24 hours. When it comes to the requirements, you only need a car title, car insurance proof, and your government-issued ID card. A good thing about best title loans is that the lender doesn’t run a credit check. Lenders provide funds to people with bad credit because they keep the car title as the collateral. If you don’t pay them back the loan, they will sell your car and handle their bad debt situation.

Payday Loans 

Everyone is well-aware of the payday loan. However, people have stopped going for this option as it doesn’t provide much cash. You can raise a few hundred dollars with it. The massive problem with this loan is its limited timeline. You need to pay off the loan very quickly, and if you don’t, you enter into a never stopping debt cycle. A payday loan seems like an excellent financial choice only when you can pay it back on time; you will have to face some serious consequences with it. Payday loan providers don’t perform a credit check. However, income and residency proof is required. There are some dangers of payday loans about which you should have a clear idea.

 

Pawn Shop 

It is common for people to take their valuable items to a pawn shop and get money against it. Just like a payday loan, a lender has a specific limit of the loan amount. On average, you can get $75-$100 from it. No matter how expensive your item is, you can only get a percentage of it as a loan. A pawnbroker will hold your item until you pay off the loan. However, it’s not the case with the best title loans as lenders won’t only hold your title while driving your car freely. Before you opt for a pawnshop loan, try to get its complete understanding.

In simple words, when you need a significant amount of cash with bad credit, then indeed, the best title loans work as an excellent option. However, when you are looking for a low amount of short-term money with bad credit, you should opt for either a pawn shop or payday loan.

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Business Finance

Borrowers Discover that Loans Are Available After Bankruptcy

Borrowers Discover that Loans Are Available After Bankruptcy
Karolina Grabowska

 

What is Bankruptcy?  

Bankruptcy is a legal judgment whereby individuals and businesses are deemed unable to make good on their payments. As a result, the courts will assess their assets & liabilities, and make a judgment about discharging those debts, thereby relinquishing the individual or business from making good on payments.’

 

Many individuals and businesses face the prospect of bankruptcy, often through no fault of their own. It may occur that an unforeseen event such as COVID-19 shuts down economic activity on a global scale, igniting widespread business closures. Of the 488,506 Chapter 7 bankruptcy cases filed (October 2018 – September 2019), 460,661 cases were discharged (94.3%). Stats were less favorable for Chapter 13 bankruptcy cases (44.60%), indicating that the courts deemed the individuals capable of managing their debts. 

 

In the unfortunate situation that bankruptcy proceedings take place, many individuals and businesses wonder about the impact this has on their ability to obtain credit facilities. First things first, bankruptcy is especially damaging on your credit score. It can knock anywhere from 100 – 200 points off your score instantly, and those points stay off for a long time. In practical terms, your bankruptcy, judgment will cause your credit rating to crater – from Fair to Poor, or Excellent to Fair in double-quick time. 

 

What Happens to Your Credit Score in Bankruptcy Cases?

 

Bankruptcy proceedings should only be filed as a last resort when all other options have been thoroughly exhausted. For a comprehensive understanding of the implications of bankruptcy, read what the bad credit loan experts say at https://bestloansforbadcredit.com/.

Once a business has filed for bankruptcy, it is possible and even necessary to apply for a bankruptcy loan to salvage operations. As the experts point out, it is vital to accurately document all aspects of bankruptcy proceedings, including accurate reporting thereof. The precise line of credit that is used depends upon the range of options currently available. These can encompass secured credit cards, credit builder loans, and secured loans, et al. Further details are provided henceforward. 

The literature on the subject of bankruptcy suggests that credit cards will be negatively impacted. Possible outcomes include elevated APRs (higher interest rates on credit), increased collateral requirements, rejections of credit applications, and lender refusals to increase credit card limits. 

While these negative effects can certainly put a damper on things, users can take meaningful steps to repair poor credit. Much of what you decide to do depends upon the type of bankruptcy proceedings you have filed. 

Chapter 7 bankruptcy filings stay on your credit report for 10 years, while Chapter 13 bankruptcy filings stay on your credit report for 7 years. Recall that bankruptcy should only be used as a last option. It can be the most effective way to discharge your debt provided you answer all applications honestly. Forthrightness is essential with bankruptcy filings, particularly with lenders and potential employers. 

Borrowers Discover that Loans Are Available After Bankruptcy
Pixabay

 

How to Gradually Rebuild Credit Scores 

Credit facilities can be provided to people who have filed for bankruptcy in the form of secured credit cards (cash deposits equal to the value of credit extended). Provided the balance is paid off in full monthly, and balances are kept low, credit scores can gradually improve. While you get to keep all of your ‘exempted’ items in bankruptcy filings, many personal effects may be liquidated to pay off debts. If you’re looking to raise your FICO score, then one way to do that is by applying for a credit builder loan. These are readily available through local credit unions. If you have valuable exempted assets, you could try using them to apply for a lower APR. 

Initially, you may find that you only get approved for low-limit loans, but these amounts will gradually increase as you manage your credit history better and your credit score rises. Fortunately, a stable work history can offset the effects of bad credit to a degree. People with full-time employment are generally viewed more favorably by lenders. This multi-pronged approach to successfully applying for a loan post-bankruptcy will serve all of your financial interests well. 

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Business Finance

HAVING TROUBLE APPLYING TO THE PAYCHECK PROTECTION PROGRAM? LAW STUDENTS ARE HERE TO HELP

HAVING TROUBLE APPLYING TO THE PAYCHECK PROTECTION PROGRAM? LAW STUDENTS ARE HERE TO HELP.

Since April 3, small-business owners have had the opportunity to apply for funds allocated through the Paycheck Protection Program (PPP) — the legislative initiative that provides 100% federally guaranteed loans to companies with less than 500 employees. But for those of you who might be struggling to connect with your local lender or finding time to apply, there’s help available. Reach out to Columbia Law School’s Tim Wu. The professor has banded together a team of law students to help small-business owners apply for funds.

You can reach Wu’s staff by emailing Manhattan Borough President Gale Brewer’s office.

This program is important because it can potentially help both businesses and employees stay afloat in the coronavirus-hit economy. One of the key measures within the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the PPP loans may be forgiven if borrowers maintain their payrolls during the COVID-19 pandemic or restore their payrolls afterward.

The U.S. Chamber of Commerce issued a Small Business Guide and Checklist which outlines what’s eligible for PPP loans, including:

—Any small business concern that meets the Small Business Administration (SBA) size standards (either the industry-based sized standard or the alternative size standard)

—Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of: 500 employees, or That meets the SBA industry size standard if more than 500

—Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs fewer than 500 per location

—Sole proprietors, independent contractors and self-employed persons

Independent contractors and self-employed individuals can apply- starting April 10.

By – Downtown Alliance 

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Business Finance

Creating A Working Business Strategy For 2020

Creating A Working Business Strategy For 2020
Photo by Helena Lopes from Pexels

2020 is still likely to be a great year for the economy despite what some in the media think is a recession looming over the nation. But there are many changes that have taken place and will continue to take place that business owners should be aware of, and here’s a few strategies they may want to consider implementing for their businesses.

Consider What Kinds Of New Technologies You Want To Utilize

Some businesses are a little reluctant to buy into new technology because they aren’t sure if it’s worth the cost. You definitely need to be able to test new technologies you’re considering buying and research what your potential ROI could be, but if you fail to change any part of your business and adapt to the new technology landscape, your competitors probably will and then pass you by as a result. Many new technologies that are becoming a part of today’s retail spaces are cashless electronic payment systems, advance ordering and delivery, integrating apps into the shopping experience and many new disruptive services. That doesn’t mean you have to do away with all your old legacy systems, but you should be aware of how profitable new technologies can make sales.

Evaluate And Implement A Great Marketing Plan

To begin a phase of growth and get where you want to go, you have to be ready to implement an innovative marketing plan that can bring positivity and enthusiasm about your brand to your customers. Old marketing methods aren’t done yet because after all, customers will still read flyers and brochures if you pass them out, and people still listen to radio and watch TV. But word of mouth also tends to spread online as well, and it’s here that people like to gain information about your business. That’s why you should have a plan to use SEO marketing, social media, email and an online reviews page to get your message out.

Have A Plan In Place For Emergencies

Any business owners will tell you that there will be times where you have to balance your business finances and personal finances. It is wise not to mix both. So, what do you do in the case of a sudden personal financial crisis, such as an unexpected emergency auto repair, when you have invested most of your savings into your business? If you find yourself in times of unexpected personal financial need, but are short on cash, you could consider online loans from direct lenders. Just as in business, there will be ups and downs in life. It’s best not to let your business go underwater to cover an unexpected personal expense.

Have A Plan For Managing Employee Slow Periods

Like every year, 2020 will probably have a few fast-paced and very slow periods you have to get through. This usually means taking a close look at your budget and sometimes having to make cuts or looking at how you can manage your employee tasks a little differently. Sometimes it pays to reassign employees to new tasks when your budget gets a little tighter, and sometimes you have to cut down on temporary or seasonal employees. But using down periods to take up projects that have been put on the back burner and encourage further employee training can help you get through these times.

As 2020 approaches, you can go into it fairly confident about the direction of your business if you’ve taken the time to review your finances and know what kind of risk your growth plan entails. But always be willing to adapt if things don’t quite go the way you had hoped.